How Having Latvian Passport Benefits Your Business
August 5, 2020
You’re an ambitious entrepreneur with your sights set on international business. You’re also thinking it might be possible for you to get Latvian citizenship. But do you know yet how these two variables intersect?
Though it might not be the first thing that comes to mind when restoring Latvian citizenship, business advantages are a tangible benefit here.
If you’re a business-minded person, you probably tend to always create a Plan B (or C, D, E...) just in case things go awry and you need to act fast to save the day. It’s also a known fact that having clear, solid options before you do need them is the best course of action.
But let’s start at the beginning.
Who can restore Latvian citizenship
Latvian citizenship restoration is guided by one simple rule. To be eligible, you have to be a descendant of a Latvian citizen who left the country in the period of occupation (circa 1940-1990)— and you need to be able to prove it with documents.
Restoring citizenship has many personal benefits, including relocation rights to any country in the EU (as Latvia is a member state) as well as accessible healthcare and education.
But that’s not everything— getting your Latvian citizenship restored has many tangible advantages that can help you expand your existing business or set in motion your long-held plans for a new and exciting project.
7 Benefits of having a Latvian passport for your business
Let’s delve into the nitty-gritty: how exactly does restoring Latvian citizenship benefit your international business prospects? and Education Benefits of Latvian Dual Citizenship
1. Easy travel and relocation
The Latvian economy is stable and growing, the average income is high, and the country comes in 39th in the Human Development Index— quite the feat. But because Latvia is a member state of the European Union, you aren’t confined to keep the business within its borders. Instead, you can take your project to any state of the EU (of course, you’ll have to check each country’s specific guidelines first) and enjoy easy movement across European borders.
And there’s more— holding a Latvian passport means you can access over 150 countries visa-free or with a simple visa-on-arrival. Latvia’s passport is ranked 12th in the world in 2020. This saves money, time, and gives your business the freedom it needs to thrive.
2. Better business image
As a business person, the benefits of being an EU citizen extend to projecting a more cosmopolitan, professional image. Unfortunately, bias does exist in the business world. If you are eligible for Latvian citizenship, you have the chance to even out the playing field and access better opportunities in certain situations.
3. Potential more lenient business taxation
If your home country is notorious for taxing businesses big time, setting up your company might not seem very attractive. Especially if you aspire to run your business internationally.
Conversely, some countries in Europe are known for establishing a lower-taxation environment that works to stimulate investment and development. Hungary, for example, has a 9% corporate tax policy. Ireland and Lithuania - 12.5% and 15% respectively. In the Netherlands, an innovation policy means that if a self-developed patent generates at least 30% of the profits, you’re taxed at a rate of 7%.
Setting up base in one of these countries gives you a better financial outcome while still operating internationally. Do the math— it’ll come out in your favor.
4. Potential better personal taxes
Similarly, some European countries are considered personal tax havens. Take Andorra: with a 10% tax on residents and companies and no tax on transfers or investment income, relocation to this microstate can do wonders for your finances. Even though Andorra is not a member of the EU, Latvian passport holder can live there as any EU citizen.
5. Easier to open an EU company
With Latvian citizenship, you’ll find it is a lot easier to open a company in the EU than it would be for someone who is not a citizen. If you don’t hold an EU passport, starting your business in the region includes tedious visa processes, lots of red tape, and often prohibitive capital requirements. But if you are a Latvian citizen, you’re part of the EU. You have the right to start your business like any other citizen, no questions asked.
6. Financial safety
European banks are safe: opening an account for yourself or your company is always a good move. Keeping your savings (or part of your savings— diversification!) in an EU or EFTA bank can improve your long-term stability.
But for non-residents, there are complications. AML (anti-money-laundering) regulations implemented throughout the EU impose stricter conditions on what you can do— and how much paperwork you’re required to fill. For Latvian passport holders, these regulations are a lot more lenient and you can easily open an account.
7. The best plan B
You never know when you’ll be forced to take an unforeseen path. Anything from natural catastrophe to a pandemic or political struggles can bring down your country’s economic potential. Venezuela and South Africa are prime examples of this.
The problem — when things go wrong, everyone starts looking for options at the same time. Many people want to relocate when trouble has already started, but by then it’s too late and all viable routes are flooded.
In short— yes. Having Latvian passport gives you options and solidifies the future of your business and finances. Our advice: if you’re eligible for restoration of Latvian citizenship, start the process today.
If you have Latvian descent and plan on restoring Latvian citizenship, we can help you get there. Write to us via email at firstname.lastname@example.org . We will guide you through the steps of document acquisition, application preparation and translation. We will walk with you until your citizenship is granted. Email us today so we can assess your eligibility and options for restoring Latvian citizenship and obtaining Latvian passport.